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☆ Getting to 2% inflation won't be easy. This is what will need to happen, and it might not be pretty
▼ + stars: | 2023-10-12 | by ( Jeff Cox | ) www.cnbc.com time to read: +6 min

Mike Blake | ReutersIn theory, getting inflation closer to the Federal Reserve's 2% target doesn't sound terribly difficult. The main culprits are related to services and shelter costs, with many of the other components showing noticeable signs of easing. watch nowInstead, getting better control of rents, medical care services and the like could take ... well, you might not want to know. Policymakers have been banking on the notion that when existing rental leases expire, they will be renegotiated at lower prices, bringing down shelter inflation. He added that the CPI report "is a reminder that we do not have good historic examples to lean on" for long-term patterns in rent inflation.

Persons: Mike Blake, Steven Blitz, Goldman Sachs, Lisa Sturtevant, Christopher Bruen, Marta Norton, Stephen Juneau, Juneau Organizations: Reuters, GlobalData, Street, Cleveland Fed, Bright MLS, Housing, Americas, Morningstar Wealth, Bank of America Locations: Rancho, San Diego , California, Maryland, Stephen Juneau , U.S

☆ Pending home sales plunged last month as mortgage rates hit 20-year highs
▼ + stars: | 2023-09-28 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

Pending sales had been on the rise the two months prior, despite elevated prices and higher mortgage rates, according to a report released Thursday by the National Association of Realtors. Pending transactions were down 18.7% from August 2022, when average weekly mortgage rates ranged between 4.99% and 5.5%. August may have been the beginning of the end of this resilient housing market — at least for a while, she added. “For others, the higher mortgage rates and general economic uncertainty are simply making them more cautious. Either way, expect the number of home sales transactions this fall to be at a decade low.”

Persons: ”, Lawrence Yun, “, Lisa Sturtevant, Sturtevant Organizations: DC CNN, National Association of Realtors Locations: Washington

Consumers are growing more pessimistic about future prospects for the economy, according to the latest survey from the Conference Board released on Tuesday. “Consumer confidence fell again in September 2023, marking two consecutive months of decline,” said Dana Peterson, chief economist at the business organization. “September’s disappointing headline number reflected another decline in the expectations index, as the present situation index was little changed. “Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for groceries and gasoline in particular,” Peterson added. “Consumers also expressed concerns about the political situation and higher interest rates.

Persons: ”, Dana Peterson, “, ” Peterson, “ Consumers, Kelly Mangold, Lisa Sturtevant Organizations: Conference, “, Federal Reserve, Census Bureau, U.S . Department of Housing, Urban Development, Real Estate Consulting, MLS, American Financial Corporation

LOS ANGELES (AP) — The average long-term U.S. mortgage rate edged up again this week, another setback for would-be homebuyers navigating an increasingly less affordable housing market. The average rate on the benchmark 30-year home loan rose to 7.19% from 7.18% last week, mortgage buyer Freddie Mac said Thursday. The average rate rose to 6.54% from 6.51% last week. Mortgage rates have been echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. The average rate on a 30-year mortgage is now more than double what it was two years ago, when it was just 2.88%.

Persons: Freddie Mac, ”, Lisa Sturtevant Organizations: ANGELES, Bright MLS, Treasury, Federal Reserve, Federal, U.S, National Association of Realtors Locations: It’s, U.S

☆ CNBC Daily Open: August’s CPI report isn’t as bad as it seems
▼ + stars: | 2023-09-14 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +3 min

Celal Gunes | Anadolu Agency | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. What you need to know todayThe bottom lineAt first glance, August's CPI report seems bad news. And gasoline prices have actually retreated 3.3% from a year ago, suggesting that they're still on a downward trend in the long run. Indeed, the annual measure of core CPI still dropped from 4.7% in July to 4.3% in August.

Persons: Celal, we've, Andrew Hunter, Lisa Sturtevant, Sturtevant, Kayla Bruun, " Bruun, Dow, —, Jeff Cox, Greg Iacurci Organizations: Anadolu Agency, Getty, CNBC, CPI, U.S . Bureau of Labor Statistics, Capital Economics, Bright MLS, Morning, Markets, 3M, Caterpillar, Nasdaq Locations: Virginia, Tesla

☆ August core inflation, excluding food and energy, rose 0.3%, hotter than expected
▼ + stars: | 2023-09-13 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

However, excluding volatile food and energy, the core CPI increased 0.3% and 4.3%, respectively, against estimates for 0.2% and 4.3%. Federal Reserve officials focus more on core as it provides a better indication of where inflation is heading over the long term. Inflation posted its biggest monthly increase this year in August as consumers faced higher prices on energy and a variety of other items. Food prices rose 0.2% while shelter costs, which make up about one-third of the CPI weighting, climbed 0.3%. Within shelter, the rent of primary residence index rose 0.5% and increased 7.8% from a year ago.

Persons: Dow Jones, airfares, Lisa Sturtevant, Sturtevant, paychecks, Andrew Hunter Organizations: Federal Reserve, U.S . Department of Labor, Transportation, Bright MLS, Treasury, Labor Department, Capital Economics, Group

These are tough times for the housing market. Meanwhile on Wednesday, the Mortgage Bankers Association said mortgage applications have plunged 28% since last year and are now at the lowest level since late 1996. After two years of a pandemic-fueled housing market frenzy and another year of rising rates and tight inventory, consumers are weary. During the pandemic, as the Federal Reserve moved to lower interest rates, mortgage rates fell to 3% and below, prompting a wave of refinancings. “Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates,” said Joel Kan, deputy chief economist at the Mortgage Bankers Association.

Persons: Freddie Mac’s, ”, Lisa Sturtevant, ” Sturtevant, Joel Kan, Redfin, Niko Voutsinas Organizations: Mortgage Bankers Association, National Association of Home Builders, Housing, Bright MLS, “, Federal Reserve, Mortgage, Association Locations: Washington, Chicago

☆ Home sales fall again in July, as supply drops to near quarter-century low
▼ + stars: | 2023-08-22 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

Homes sold at the slowest July pace since 2010. This count is for closings, so contracts were likely signed in May and June, when mortgage rates went from around 6.5% to well over 7%. Sales fell month to month in all regions except the West, where they rose 2.7%. Roughly three-quarters of the homes sold were on the market for less than a month, indicating still strong demand. "The housing market is at a pivotal point as we head into fall," said Lisa Sturtevant, chief economist at Bright MLS, noting higher mortgage rates in particular.

Persons: it's, Lawrence Yun, Danielle Hale, Buyers, Lisa Sturtevant Organizations: National Association of Realtors, Homes, Realtor.com, Realtors, Federal Housing Administration, Bright MLS

☆ US 30-year fixed mortgage rate jumps to near 21-1/2-year high
▼ + stars: | 2023-08-17 | by ( Safiyah Riddle | ) www.reuters.com time to read: +2 min

REUTERS/Octavio Jones/File Photo Acquire Licensing RightsAug 17 (Reuters) - U.S. mortgage rates surged this week, with the popular 30-year fixed rate hitting the highest level in more than 21 years, further complicating the housing market outlook. The average 30-year rate shot up to 7.09%, the highest level since April 2002, from 6.96% in the prior week, mortgage finance agency Freddie Mac said on Thursday. But sky-high mortgage rates could temper recent building trends, keeping supply tight and house prices elevated. Higher mortgage rates were blamed for the ebb in confidence among homebuilders in August. "The housing market has been surprisingly resilient, confounding expectations for the last year," said Bright MLS chief economist Lisa Sturtevant.

Persons: Octavio Jones, Freddie Mac, Freddie Mac's, Sam Khater, Lisa Sturtevant, Safiyah Riddle, Diane Craft Organizations: REUTERS, Federal Reserve, U.S, Commerce Department, MLS, Thomson Locations: Tampa , Florida, U.S

☆ US consumer confidence races to two-year high; house prices rising
▼ + stars: | 2023-07-25 | by ( Lucia Mutikani | ) www.reuters.com time to read: +4 min

Summary Consumer confidence index increases to 117.0 in JulyLabor market differential rises to 37.2 from 32.5 in JuneHouse prices continue upward trend in MayWASHINGTON, July 25 (Reuters) - U.S. consumer confidence increased to a two-year high in July amid a persistently tight labor market and receding inflation, bolstering the economy's prospects in the near term. That supports economists' views that consumer spending was flattening out after rising at its fastest pace in two years in the first quarter. The Conference Board's consumer confidence index increased to 117 this month, the highest reading since July 2021, from 110.1 in June. TIGHT LABOR MARKETThe survey's so-called labor market differential, derived from data on respondents' views on whether jobs are plentiful or hard to get, increased to 37.2 this month from 32.8 in June, a sign labor market conditions remain tight despite job growth slowing. And while more households planned to buy houses, they could run into affordability challenges as tight supply pushes up prices.

Persons: Robert Frick, Dana Peterson, Lisa Sturtevant, Lucia Mutikani, Paul Simao Organizations: Labor, Conference, Federal Reserve, Consumers, Navy Federal Credit Union, The, Reuters, University of, Conference Board's, Fed, Federal Housing Finance Agency, Bright MLS, Thomson Locations: WASHINGTON, Vienna , Virginia, U.S

☆ Inflation rose just 0.2% in June, less than expected as consumers get a break from price increases
▼ + stars: | 2023-07-12 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

On a monthly basis, the index, which measures a broad swath of prices for goods and services, rose 0.2%. Stripping out volatile food and energy prices, core CPI rose 4.8% from a year ago and 0.2% on a monthly basis. The annual rate was the lowest since October 2021. Food prices rose just 0.1% on the month while used vehicle prices, a primary source for the inflation surge in the early part of 2022, declined 0.5%. The easing in the CPI helped boost worker paychecks: Real average hourly earnings, adjusted for inflation rose 0.2% from May to June and increased 1.2% on a year-over-year basis.

Persons: George Mateyo, Mateyo, Lisa Sturtevant Organizations: Federal Reserve, Key Private Bank, of Labor Statistics, Bright MLS, Fed, Dow Jones, Treasury, Traders, CPI

☆ Ruling Against Warhol Shouldn’t Hurt Artists. But It Might.
▼ + stars: | 2023-05-19 | by ( Blake Gopnik | ) www.nytimes.com time to read: +1 min

It turned out that what the majority actually had problems with — what the decision was mostly about — was the Warhol Foundation’s failure to pay Goldsmith a licensing fee in 2016. It looked like the court had sidestepped the larger issue of whether Warhol should have used her image at all. Or that’s what this new ruling would let some artists and their lawyers argue. At the very least, the ruling won’t send museums rushing to consign the appropriations they own to the dark depths of the vaults, as a more sweeping ruling against Warhol might have done. So long as appropriation artists aren’t selling licenses for their creations to be reproduced — for instance, in a popular magazine — the Supreme Court’s new decision should not affect them.

☆ Home prices are in their longest slump since 2012. Here's what experts think happens next.
▼ + stars: | 2023-03-28 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

US home prices just fell for the seventh consecutive month, Case-Shiller data showed Tuesday. Here's what economists are saying about the housing market outlook. Over the last year, the Federal Reserve's aggressive interest rate hiking campaign has helped lift mortgage rates sharply, weighing on affordability and demand. Here's what experts have said could come next for the housing market. "Long-term [the housing shortage] puts a floor under demand in this country for newly built homes," he told CNBC on Thursday.

☆ KB Home expects Q2 net orders to fall amid tough year-ago comparisons
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +1 min

March 22 (Reuters) - U.S. homebuilder KB Home (KBH.N) said on Wednesday net orders in the first two-and-a-half weeks of the ongoing second quarter fell 24% from last year, issuing a rare mid-quarter update due to the ongoing market volatility fueled by a banking crisis. The California-based company expects net orders for the second quarter, which began in March, between 3,000 and 3,700, a 14% decline when compared with the midpoint of the range from a year earlier, when steady employment and wage growth were fueling housing demand. "The banking crisis could lead to a little bit of injection of life into the housing market by lowering mortgage rates," said Lisa Sturtevant, chief economist at Bright MLS. KB Home reported better-than-expected first-quarter revenue, sending its shares up by 3% after the bell. Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Inflation gauge increased 0.4% in February, as expected and up 6% from a year ago
▼ + stars: | 2023-03-14 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

Excluding volatile food and energy prices, core CPI increased 0.5% in February and 5.5% on a 12-month basis. The consumer price index increased 0.4% for the month, putting the annual inflation rate at 6%, the Labor Department reported Tuesday. Inflation rose in February but was in line with expectations, likely keeping the Federal Reserve on track for another interest rate hike next week despite recent banking industry turmoil. Food prices rose 0.4% and 9.5% respectively. That entails core services inflation minus housing, cohort that increased 0.2% in February and 3.7% from a year ago, according to CNBC calculations.

☆ Home price gains weakened sharply to end 2022, according to S&P Case-Shiller
▼ + stars: | 2023-02-28 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Higher mortgage rates weighed on home price gains at the end of 2022. While prices were still higher than they were a year earlier, the rate of increase slowed quickly, according to data released Tuesday. Home prices in December were 5.8% higher than the previous December, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. For all of 2022, the 5.8% price gain was the 15th best performance in the index's 35-year history, but was well below 2021's record-setting 18.9% gain. Weekly data on buyer activity indicates that homebuyers may be watching mortgage rates closely.

☆ Premarket stocks: Will the Fed end the 2023 market rally?
▼ + stars: | 2023-02-01 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

So will Fed Chair Jerome Powell dampen expectations and reiterate that the fight against inflation still has a way to go, or will the Fed show signs that they’re ready to ease up on rate hikes? Wall Street analysts also expect the Fed will stop hiking altogether by the spring. This will leave the market hanging on the future of how many rate hikes we will see.”He’s preparing for a volatile market reaction. But now, investors may be a bit too eager to end treatment, even as Fed officials warn that doing so would be premature. Stocks close out a jubilant JanuaryThe greatest comebacks of all time: Rocky Balboa, JNCO jeans, Apple and now… the US stock market.

☆ After this week’s Fed rate hike, where are mortgage rates headed?
▼ + stars: | 2022-12-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +8 min

Mortgage rates have run up so far and so fast this year that many would-be homebuyers can no longer afford to buy a home. By fall, mortgage rates had more than doubled, eventually topping 7% in October. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “We have to remember mortgage rates come down much slower than they go up,” said Cohn. “Volatility increases the level of mortgage rates, compared to Treasury rates, because of the prepayment option,” said Chester Spatt, professor of finance at Carnegie Mellon University’s Tepper School of Business.

☆ First Gen Z congressman, Maxwell Frost, says he was denied an apartment in DC over bad credit
▼ + stars: | 2022-12-08 | by ( Juliana Kaplan | Kayla Gallagher | ) www.businessinsider.com time to read: +4 min

Gen Z Congressman Maxwell Frost tweeted Thursday he got denied from a DC apartment for bad credit. "Just applied to an apartment in DC where I told the guy that my credit was really bad. He's not alone: Credit card balances have been on the rise, especially for Gen Z, as the cost of living keeps soaring. But as Insider's Kevin L. Matthews II reported, there's a "credit gap" between Black and white borrowers, further powering the racial wealth gap. That can further the gap in homeownership rates between Americans of color and white Americans.

The average 30-year mortgage rate climbed to 5.89%, the highest level since 2008, according to new data published Thursday by Freddie Mac. Mortgage rates briefly declined for a period this summer even as the Federal Reserve raised the key interest rate to fight inflation. In remarks Thursday morning, Powell signaled the Fed intends to keep rates higher for longer. The higher mortgage rates are already weighing on home prices. Even as mortgage rates tick higher, home shoppers should be able to easily find rates lower than the average, Freddie Mac said.

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